Research On The Influencing Factors Of The Effectiveness Of Financial Asset Allocation In Elderly Households

With the rapid growth of China’s economy for more than 40 years,the income and wealth of households have also increased rapidly,and the optimization and investment of household financial assets has become a research topic of practical significance.At the same time,the aging degree in our country is showing an increasingly deepening trend,and families need to bear more pension pressure.In order to realize the appreciation of wealth,families will allocate financial assets,especially elderly families,whose family wealth is limited,will pay more attention to the effective allocation of assets.Therefore,this paper studies the effectiveness of financial asset allocation of elderly households.This research has the following significance:on the one hand,it is to explore the factors that affect the effectiveness of the asset allocation of elderly families;on the other hand,in the long run,the research is conducive to promoting the elderly to learn economic and financial knowledge,improve their own financial literacy,and improve their awareness of risk prevention,according to their own and family characteristics to rationally allocate financial assets,so as to achieve the preservation and appreciation of the total family assets,and provide protection for old age.In addition,financial institutions can design differentiated financial products according to the characteristics of elderly families,innovate business models,improve business levels,and promote the sound development of enterprises.The government can formulate relevant measures to promote the national financial quality education,improve the social security system,strengthen the supervision of financial institutions,create a better social environment and investment environment for the elderly,guide residents to participate in investment actively to improve family wealth,so as to enhance the country’s economic strength.Current research results show that household wealth,social capital,household registration,marital status,education level,risk preference and financial literacy have an impact on the effectiveness of household asset allocation.This paper uses the Chinese Household Finance Survey data（CHFS）of Southwestern University of Finance and Economics in 2017 to screen the elderly households whose heads are over 60 years old,selects stocks,bonds and funds as the representatives of risky financial assets,and constructs the Sharpe ratio of household financial asset portfolio as the measurement index of the effectiveness of asset allocation of elderly households.The proportion of the distribution of financial assets of sample households was obtained through CHFS data,and the Sharpe ratio of sample households was calculated based on the income of financial assets.This paper innovatively starts from the perspective of the elderly group,and on the basis of previous variables,adds the proportion of minors and subjective well-being variables as the research object of influencing factors of the effectiveness of asset allocation of elderly households.Tobit regression model was used to empirically analyze the influencing factors of validity,explore the influencing mechanism and regional differences,and test the robustness of the empirical results from two perspectives.This paper draws the following conclusions:for the elderly households,the higher the household net assets,the smaller the family size and the higher the household income,the more effective the asset allocation is.The efficiency of asset allocation is higher for married non-agricultural households with young heads of households,female gender,high education level,low risk aversion,no property,no social pension insurance,and high financial literacy.The degree of household aging reduces the efficiency of household asset allocation by increasing the degree of risk aversion.Financial literacy is a common factor affecting the effectiveness of allocation for the elderly families in the east,middle and west regions.Slightly different from previous studies,this study found that:for elderly households over 60 years old,the proportion of minors in the family has nothing to do with the effectiveness of family asset allocation,and the effectiveness of family asset allocation has nothing to do with the subjective well-being of elderly households,and has nothing to do with the health degree.Region and household type also had nothing to do with asset allocation effectiveness.There is a high correlation between the effectiveness of asset allocation and the personal characteristics of elderly households,and the level of financial literacy,education and risk aversion is highly correlated with the effectiveness of financial asset allocation of elderly households.In order to improve the effectiveness of asset allocation of elderly residents’households,referring to the factors that can be improved in the research conclusions,the following countermeasures and suggestions are put forward:the government should regulate and guide financial institutions,strengthen residents’ financial quality education,improve residents’ financial literacy,and improve the social endowment insurance system.Improve the social security system.Financial institutions should innovate financial products suitable for the elderly,promote the iteration of financial products,customize products for the elderly,upgrade and improve services,and meet the needs of the elderly.Elderly families should learn the knowledge of financial asset allocation,allocate assets reasonably,and improve the effectiveness of allocation.